Episode 17

Payroll Tax Fundamentals - Kelly Chard & Ben Ryan Part 1 of 2

In this episode of Medicubes, join Ben Ryan and Kelly Chard as they discuss the intricacies of payroll tax for GP clinics.

They cover how payroll tax affects medical practices in Australia and the recent crackdown by revenue offices on non-compliant practices. Hear real-world cases highlighting the importance of properly classifying doctors to not run into payroll tax pain later down the line.

Key Takeaways:

  • 02:15 - Payroll tax is a state-based tax administered by each state's revenue office, not the ATO (Australian Taxation Office)
  • 03:45 - Revenue offices are actively cracking down on medical practices that have been non-compliant with payroll tax regulations.
  • 06:20 - Recent cases involving Optical Superstore and Thomas and Naaz have brought attention to the issue of properly classifying doctors and patients under the Payroll Tax Act.
  • 10:30 - Medical practices need to consider payroll tax when dealing with doctors and patients and seek advice from experienced professionals.
  • 14:10 - It is essential for medical practices to have conversations with knowledgeable professionals who specialise in both accounting and legal aspects of the medical industry.
  • 17:45 - Updating bank accounts without considering the wider plan will not fix any existing payroll tax issues.
  • 21:00 - Collaborating with legal advisors and experts is crucial to ensure operational changes align with legal advice.
  • 24:15 - Understanding the business structure, evaluating day-to-day operations, and seeking professional advice are the first steps in managing payroll tax risks.

Remember this episode is not professional advice in any way.  Please seek your own accounting and legal advice taking into account your own unique circumstances.

About the Podcast

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The Medicubes team bring you a monthly panel conversation of exciting and challenging topics in primary health care, answering listener questions and invited guests to the discussions.

About your hosts

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Kim Poyner

Accredited Health Coach and executive coach, with over 20 years of experience in General Practice and Intensive Care Units. Mentor to health professionals and organisations to achieve their best, specialising in chronic disease management, coaching, and change management programs.
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Riwka Hagen

An experienced general practice manager, with a passion for leadership development, coaching, and business management in the health sector. As the Director of Medical Business Services and Medical Business Coaching, she provides consulting, advisory, coaching, training, and mentoring services to health organisations Australia-wide, and is also the founder of the highly active Facebook group 'Practice Managers Network'.
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Chris Smeed

A lover of all things Practice Management and Data. Always thinking of ways to make life easier and to help with patient outcomes.